IT Portfolio Management: A Framework for Making Strategic IT Investment Decisions
نویسندگان
چکیده
IT spending has been recognised as representing a large percentage of the budget for organisations. Research has shown that significant value can be derived from IT investments if organisations actively and effectively manage their IT investments using a portfolio management approach. The goal of this paper is to contribute to the understanding of how IT portfolio management affects strategic IT investment decision making. First, an IT Portfolio Management Maturity Index is developed so that IS managers can readily assess the level of maturity of their organisation’s IT portfolio management. Second, a structural model is presented to examine the influence of IT portfolio management on decision rationality and organisational political behaviour. Next, we examine how these two outcomes of IT portfolio management impact firm performance. The proposed framework can be used as a benchmark for managers to understand how to allocate IT resources most effectively. It also serves as a foundation for further research in IT portfolio Management and other IT governance mechanisms.
منابع مشابه
Strategic Cost-Cutting in Information Technology: toward a Framework for Enhancing the Business Value of IT
The increasing dependency of many businesses with information technology (IT)and the high percentage of the IT investment in all invested capital in businessenvironment ask for more attention to this important driver of business. Thelimitation of capital budget forces the managers to look for more wise investment inIT. There are many cost-cutting techniques in the literature and each of them ha...
متن کاملInvestment Decision-Making about Portfolio of Technology Development Projects; Based on the Analysis of Success Criteria using Fuzzy Neural Network and MADM
Technology development project is a type of investment project and it is important to identify the performance indicators and planning for the correct investment. The purpose of this research is the development of indicators of portfolio success, accurate analysis of the effects of indicators on each other and the achievement of a proper investment model. In this research, the success criteria ...
متن کاملOn the Improvement of Strategic Investment Decisions and Active Decision Support Systems
Strategic investment decisions (SID’s) are more easily understood and controlled than most of the other activities undertaken within the framework of strategic management. Hyperknowledge support systems have been used as problem solving and decision support environments for strategic management and for strategic decision making in a number of industries in recent years. It appears that the logi...
متن کاملOptimization of Bank Portfolio Investment Decision Considering Resistive Economy
Increasing economy’s resistance against the menace of sanctions, various risks, shocks, and internal and external threats are one of the main national policies which can be implemented through bank investments. Investment project selection is a complex and multi-criteria decision-making process that is influenced by multiple and often some conflicting objectives. This paper studies portfolio inve...
متن کاملA fuzzy decision support system for strategic portfolio management
Portfolio selection for strategic management is a crucial activity in many organizations, and it is concerned with a complex process that involves many decision-making situations. In order to decide which of the proposed projects should be retained in the final project portfolio, numerous conflicting criteria must be considered. They include economic, personnel development, and corporate image....
متن کامل